Americans are evenly split on their shopping habits, shopping both big and small – 29% favor local or small businesses, while 29% prefer national retailers. Though price remains top-of-mind for many shoppers (62%), speed is a major factor, too: 53% say they want to get an item as fast as possible, no matter where it comes from, according to a new study by Empower, a financial services company.
Shoppers appreciate the personalized customer service (36%), high-quality and craftsmanship (34%) and locally made products (56%) found at the stores in their neighborhood. Lower prices (85%), greater product variety (71%) and more flexible return policies/warranties (64%) motivate consumers to pick big-box retailers.
Key takeaways
- Best of both: 29% of Americans prefer big chains, 29% favor local small businesses; 82% of Americans say they shop at both big chains and small businesses for different items.
- 53% want to get items as fast as possible, no matter where they come from.
- Half of Americans say bigger chain stores offer convenience (56%) and more loyalty programs or rewards (51%).
- Three in five (61%) prefer to buy gifts from small businesses because they can find more unique and personal options.
- Eating at local restaurants (75%) and shopping for produce at local farmers’ markets (51%) are ways consumers support their local economies.
- Monthly spending at local small businesses averages $106, with Gen X ($113) and Millennials ($110) splurging more.
Purchasing preferences
Economic pressures can play a role in where Americans are shopping around: 44% report purchasing items less at small businesses due to inflation. Three-quarters of spenders say they buy online from big box stores to get better deals.
Beyond price, six in 10 Americans prefer to purchase gifts for others at local shops because they can find more personal and unique options. Three-quarters support small businesses in their town by eating at local restaurants (non-chains) and shopping for produce at farmers’ markets (51%). Other local finds consumers are on the hunt for include books and media (51%) and home goods or decor (44%).
The return or warranty policies at big chains offer financial peace of mind for many (49%), while shoppers are looking for electronics and appliances (92%) and sporting goods (81%) at national retailers.
Baby Boomers (41%) and Gen X (31%) are more likely to prefer shopping locally, while Millennials and Gen Z are more flexible – 42% and 46%, respectively, say they have no preference. Gen Xers spend the most per monthly average across both local and big chain stores, followed by Millennials, while Gen Z and Baby Boomers report lower spending overall.
Average monthly spending at local small businesses, by generation:
- Gen X: $113
- Millennials: $110
- Gen Z: $96
- Baby Boomers: $88
Average monthly spending at big chain stores, by generation:
- Gen X: $379
- Millennials: $338
- Gen Z: $298
- Baby Boomers: $259
The appeal of small businesses
More than a third (35%) are willing to pay extra at a local store for a product they could also buy at a big chain. On average, consumers are comfortable paying up to $14 more, with 10% ready to spend over $30.
Convenience is another important factor, especially for younger generations. Over half of Gen Zers (56%) would shop “small” more often if faster shipping options were available.
Online platforms like Etsy have also gained traction. About half of Americans (51%), including 54% of both Gen Z and Millennials, use these channels to support small businesses.
Additional reasons shoppers value small businesses include locally handcrafted products (56%), building relationships with owners (39%), and personalized service (36%).
The allure of big chains
Big chains attract shoppers with competitive prices, convenience, and loyalty rewards. Gen Zers are the most likely to seek rewards and discounts – 61% prefer shopping at national retailers to take advantage of these perks. When shopping online specifically, Gen Xers (79%) are more likely to buy from chain stores because of deals offered.
Methodology
Empower commissioned an online survey of 1,009 Americans in October 2024.
By: Brandpoint
